Subway Brand Analysis presentation

We conducted qualitative and quantitative surveys about Subway's brand image and loyalty in Pakistan and analyzed the collected data.
And then designed the Mental Association Map & Customer-Based Brand Equity (CBBE) Model to show the brand's success and customers' attitudes and devised tactical recommendations for the future.

1. Group 5

2. The Subway Story Submarine sandwich chain and franchise operating in the QSR (quick-service restaurant) industry. It began as a small startup around 50 years ago, with a continuous increase in growth and popularity over the decades. Currently, holds the 3 rd position on global QSR rankings. Goal is to be ranked the number one QSR worldwide.

3. Memorable Likable Meaningful Transferable Adaptable HIGH HIGH HIGH LOW LOW HIGH LOW HIGH HIGH HIGH HIGH HIGH HIGH LOW MEDIUM MEDIUM LOW LOW LOW LOW M/H M/H M/H M/H HIGH Eat fresh. Subway’s Brand Elements Jingle Logo Name Slogan Symbol

4. Marketing Strategy - 4 P’s Subway adopts a “Traditional Marketing Strategy”, whereby its promotions revolve around emphasizing product features and benefits, i.e. customizable combinations, healthy, nutritious, and fresh. Product Subway’s main product is the submarine sandwich or ‘the sub’. Subway’s unique product element of the marketing mix is the “Do-it-yourself approach” wherein customers choose from a wide variety of different breads and non-veg./vegetarian options. Price In comparison to other popular fast food places, Subway is premium priced. Also does not change its prices very often . Placement 24,000 branches globally In Pakistan, branches in 14 cities, including cities like Multan, Rahim Yar Khan, Bahawalpur, and Sahiwal.  

5. Promotion In the local context, though Subway does not use traditional media to promote its products (television and radio), but it does have social media presence on both Facebook and Instagram. Promotional messages customized to local context

6. Competitor Identification 3 sources of evidence Intends to become the number one QSR worldwide (a position currently held by McDonald’s) Multiple ad campaigns targeting McDonald’s directly Survey results – 45% listed McDonald’s as their preferred choice of the top 3 fast-food chains to dine at, while Subway ranked at 35%.

7. PODs High customizability with 3.2 billion possible combos Minimal to no trans fats Vegetarian options Does not use the harmful ingredient MSG (monosodium glutamate) in any of its products (McDonald’s uses HCFC -22 in its packaging that contributes ozone depletion) POPs Fast and convenient food Consistency of food quality across different branches 24/7 services

8. Subway Positioning Map

9. Mental Association Map

10. High frequency NEGATIVE ASSOCIATIONS Insufficient value for money – small serving size for too high a price, not fulfilling Little to no deal options Lack of advertising Small, congested branches with inadequate seating space High frequency POSITIVE ASSOCIATIONS Image Healthy Hygienic Fresh Performance High degree of customizability Sense of control and transparency Quick and 24/7 service Composition Variety of breads and sauces

11. Valuable Insights Social Responsibility All subway packaging is recyclable Low to high frequency perception  increase awareness of Subway’s environmentally-friendly packaging Contradiction to ”healthy” brand image Availability of carbonated drinks, cookies, and crisps takes away from Subway’s “healthy and nutritious” USP and compromises its projected brand image Monotonous taste Despite the variety of ingredients and high sub-sandwich customizability Overpriced and low value for money Subway’s brand mantra “Cheap, fresh, and healthy” Healthy and fresh  consistent with consumer perceptions Cheap  contradictory

12. CBBE Pyramid

13. On average, 93% able to correctly identify incomplete images of Subway’s brand logo and menu  high brand recognition However, only 35% listed Subway as one of their “top 3 favorite fast-food places to eat at”.  low brand recall Salience

14. User profile  “Physically-active individuals” 54% of the Subway users engage in some sort of physical activity at least once a week AND around 10% engaged in such activities daily. % Imagery

15. While the brand seems to satisfy consumer needs with respect to convenience (88%), freshness (90%), and hygiene (95%) , it fails to deliver its promise of a “cheap” fast-food alternative. Only 15% of the consumers found Subway to have an excellent return on value for money. Due to its already-overpriced sandwiches, a significant 86% of the surveyed consumers said that their buying behavior would decrease as a result of a significant price increase at Subway. Performance

16. A significant 76% of the surveyed consumers found the brand to be likeable , while most consumers did not perceive the brand as particularly innovative (19%) or trustworthy (34%). The top three feelings evoked by Subway were warmth (38%), fun (30%), and social approval (29%). The fun feeling  the ability to experiment with the variety of ingredients , to make one’s own customized sub  a sense of control and immense freedom of choice with over 3.2 billion possible sub combinations. Feeling of social approval  adding to Subway’s brand equity over the long run. This effect can be attributed to behavioral contagion i.e. when a health-conscious, physically active individual is seen to be a regular Subway consumer, it reinforces the brand’s “healthy and nutritious” food image, essentially acting as a CTA for potential consumers . Judgements and Feelings

17. Brand loyalty context  only 12% would go out of their way to make a purchase. Attitudinal attachment context  only 6% of the Subway consumer considered the brand “more than a product” Active engagement context  only 11% kept up to date with Subway’s social media presence, and one of the underlying reasons is that Subway lacks a prominent one . Subway significantly lacks in all 3 respects. Resonance

18. Tactical Recommendations Expand menu offerings Introduce Breakfast menu (eggs, smoked meats, kebabs, baked beans, cheese), healthy desserts, hot beverages More deal options (option of healthy sides, Kid’s Meals) Increase advertising and social media presence Invest in ad campaigns on high exposure media platforms Increase awareness of recyclable packaging (campaigns, “Environmentally responsible” brand image + nutritional balance and minimal to no trans fats (link) Strengthen brand credibility by endorsements via influential and trustworthy brand ambassadors. For example: professional boxers Mohammad Waseem & Amir “King” Khan. Prevent diffusion of brand image Replace cookies, Lays crisps, sodas etc. with healthier alternatives, as the availability of such products takes away from Subway’s “Healthy and nutritious” USP/POD, and thus compromises its projected brand image.